Technical Study
The project is to establish a café where the project provides hot and cold drinks and some legumes, at prices that suit the general level of the targeted customers in the region, relying on achieving greater profitability from repeat visits.
The project is to establish a café where the project provides hot and cold drinks and some legumes, at prices that suit the general level of targeted customers in the area, relying on achieving greater profitability from repeat visits. The target segment of the project is from 15 to 65 years old and above of men, which is considered one of the most popular groups in cafes and coffee shops. The popular café is characterized by achieving excellent quality for all products and services. Diversity in drinks and complete and continuous cleanliness of the place, assets and workers. The popular café aims to employ workers and improve their economic and social level. It also aims to achieve a high quality level for the services provided. Maintaining a competitive price level enables the project to obtain its target share. Contributing to covering part of the increasing demand for cafe and coffee shop services. The demand for popular café services is affected by the increase in individual spending and the increase in average incomes. The population increases annually and the increase in individual spending rates on cafe and coffee shop services, so establishing a popular café is considered one of the major investment opportunities that achieve high economic returns.
Executive summary
Study project services/products
Market size study
Risk Assessment.
The GCC countries comprise 0.7% of the world’s population; however, they represent 3% of global spending on processed foods and beverages; amounting to 102 billion US dollars out of 3.4 trillion US dollars. From this, we conclude that the per capita share of food consumption in the region has increased and exceeded the global level of consumption. This is not surprising if we look closely; the population of the GCC countries now exceeds 58 million people, and there is an estimated 56.3% of this population; falling within the age group between (25 years – 54 years); and the food industries market is based on this important segment; as it is the most vibrant and youthful of all groups. Because the Kingdom of Saudi Arabia accounts for about 59.7% of the total population in all GCC countries; and because its share of the food and beverage market exceeds 53%, “Mashroo3k” Company decided to present indicators of this vital market in this blessed land; According to our latest available statistics:
Until the end of the second quarter of 2021, the number of food product factories was estimated at 916 factories, and there were 249 factories under construction. As for beverage factories, their number was 209 factories; while the number of factories under construction was 71 factories.
The number of food product factories represents 11.1% of the total number of existing and producing factories (8258 factories), and beverage factories represent 2.5% of the total number of factories in the Kingdom.
The food and beverage market in the Kingdom of Saudi Arabia was estimated at about 168.8 billion riyals.
By the end of 2021, the volume of food consumption amounted to 221 billion riyals; with a growth rate of 6%.
According to international reports; the value of food consumption in the Kingdom of Saudi Arabia is 70 billion US dollars; a value equivalent to 60% of the total food consumption in the Gulf region.
The fast food market in Saudi Arabia is expected to reach 4.5 billion US dollars in the next three years.
